A commencement certificate is a document issued by the local municipal authority that allows the developer to start working on the project. The commencement certificate (or CC) is usually issued only after the developer has met all of the legal requirements and obtained all of the necessary approvals for the building’s design.
How can a developer obtain a commencement certificate?
The developer must obtain a commencement certificate from the local authorities before beginning construction on a new building or project. After the developer submits his project plan, the municipal authority will conduct several preliminary checks before approving the project’s start date. During this time, the developer must be able to provide all of the required no-objection certificates (NOCs) in order to start a new construction project. He will also need to show proof of clearance from all relevant departments, such as the water department, fire department, sewage department, electricity department, and so on.
Documents that a builder will have to submit
- Property documents
- Tax receipts
- NOCs from various government departments
Issuance of certificate
The CC typically comes in two stages: first for the plinth area, and then for the superstructure. Based on the findings of the inspection by authorities from the town planning and engineering departments, the developer receives the commencement certificate. In order to proceed with the project, the developer obtains all of the necessary licenses and sanctions. A valid CC is required under the new RERA guidelines for a project to be considered RERA-approved.
What is the importance of a commencement certificate for a home buyer?
A developer cannot begin construction on his project until he receives the CC. In addition, A home buyer should not invest in a project if the developer cannot provide a valid CC. In addition, one must confirm that the developer’s CC includes the floor on which the property is located.
If you buy a property in a project that lacks a valid CC, you risk becoming the owner of an illegal property. It may also result in fines if you purchase a property in an illegal development.
A certificate of commencement is just as important as a certificate of occupancy. It guarantees that you are buying a property in a project that has met all of the requirements. It secures your ownership of the property and protects you from future legal issues.
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Difference between encumbrance certificate and commencement certificate
A commencement certificate indicates that the builder may begin work on a project. An encumbrance certificate certifies that the project is free and clear of all liabilities.